Sep 30, · In an early paper titled “The People’s Ledger,” Omarova argued for making private banks “non-depository lenders,” changing banking “as we know it.”. Omarova was picked to be the Banking and finance dissertation topics. Role of micro-loans in the modern financial industry. Online currencies like Bitcoin brought changes in the concept of fiat currencies. Identifying the forces causing American retail banking centres to change. Analysing the treatment of off-balance sheet blogger.comted Reading Time: 3 mins Dissertation Banking Law, What Kind Of Person Is A Shopaholic Essay, Research Paper Topics On The Salem Witch Trials, Effects Of High Gas Prices Essay/10()
Banking and Finance Dissertation Topics (28 Examples) For Research
The regulation of the financial service industry has assumed greater importance in the wake of a balanced economic development of the nation. An intrusive regulatory framework is considered very much essential in view of the concern about the dissertation banking law and soundness of the financial service industry.
However the advancement in the dissertation banking law and communication technology, dissertation banking law, the enlargement in the financial services industry, the ambiguity in the distinction of banking and non-banking financial institutions and the creation and offering of numerous financial service products have put the banking system in a state of perpetual change and instability.
Thus the transformation of the industry into a highly competitive and dynamic environment has made the system incompatible with the traditional regulatory frameworks that include deposit insurance, limits on permissible activities and controls exercised in the form of capital and liquidity reserve regulations.
The key question remains that whether at all it is possible to adapt the regulatory framework to the increasingly competitive environment of the banking systems. This paper examines the risks that are being faced by the banking dissertation banking law other financial institutions. The basic functions of banks, stockbrokers, insurance companies and other financial service providers comprises of services relating to:. Another service provided by the financial institutions is the use of money or other financial instruments to realize the payments due on purchases of goods and services on behalf of the customers.
In order to perform this function efficiently the banks and the financial institutions have developed instruments like checks, wire transfers, credit and debit cards including smart cards and dissertation banking law host of other instruments which are known as the payment mechanism of the economy.
Yet another addition to the financial services include the provision of guidance to the potential savers on how effectively use their savings to reap a good return on their investment which service is recognized as asset management and treasury management. The Environment, dissertation banking law. The financial services have taken the provision of a fifth service which is the risk management to both the investors and savers. Thus the financial services encompass the following mechanisms:.
The US financial system consists of an array dissertation banking law financial institutions that provide any of the abovementioned financial services. Despite being the most developed and extensive in the world, the financial service institutions face a number of risks in providing the above services.
Chapter 7 details the different kinds of risks being faced by the financial service institutions in providing the various services outlined above. It may be noted that these risks are not peculiar to the financial institutions alone but are common to all the business entities in the world. The major risk being faced by the banks and the financials institutions is the risk posed by the change in the interest rates.
The interest rate risk for the financial institutions emanates from the financial intermediation services being undertaken by them.
The risk is caused by the difference in the maturity values of the assets and liabilities of the banks. The interest rate sensitivity differences often expose the equity of the banks and other institutions to changes in the interest rates which ultimately affects the profitability of the institutions.
The unexpected changes in the interest rates make the balance sheet hedging activity of the bank which is normally undertaken on the basis of the maturities of assets and liabilities at the expected maturity values shown in the balance sheets of the firms.
When there are changes in the interest which affect the valuation of assets and liabilities negatively the banks and other institutions dissertation banking law bound to get a beating of the earnings.
The other forms of interest rate risks are the refinancing risk and the reinvestment risks. Another major risk in the operations of the financial institutions is the market risk which is incurred in trading of the assets and liabilities including derivatives.
The example of the market risk can be found in the change in the exchange value of Russian Ruble. The unexpected decline in the manufacturing activities of the country is another market risk being faced by the banks. For instance, dissertation banking law, the working of the banks and the financial institutions were greatly affected in July when the Dow Jones Industrial index dropped by The shift in the focus of the banks and FIs towards more trading activities away from the traditional banking and financial services also is instrumental in increasing the market risks of these entities.
The example of market risk may be found in the heavy loss occurred to the AllFirst Bank, the US subsidiary of the Allied Irish Bank where the action of a rogue trader in manipulating the large trade losses and losses resulted from other frauds involving foreign exchange positions had caused huge losses to the bank. The banks have also started increasingly to resort to securitization in order to thwart the risks relating to changing liquidity positions of assets and liabilities. Chapter 7.
The credit risk may be either firm specific credit risk or a systematic credit risk. Major credit risk the banks and FIs face is the charge off s on the credit card debts that have progressively been increasing during the s and s starting from mid s. There has been a steady increase in the credit card loans and the unused balances in the loans.
With the changing business scenario there has been an increasing risk being faced by the banks and the financial institutions in the form of risks involved dissertation banking law the letters dissertation banking law credit payments, commitments to other loans and the derivative positions booked by the dissertation banking law which increase the risk of the banks as the inflated values in the assets due to off balance sheet financing techniques being adopted by the constituents.
The speculative activities in which the firms engage by using off-balance sheet items result in the increase of a considerable credit risks for the banks. This risk is dissertation banking law caused by the inadequacies in the internal processes and systems of the banks, inefficiencies of the people involved in the functioning of the banks and the risks associated with the external events dissertation banking law cause losses to the banks and financials institutions.
The operational risks associated with the technological innovations of the Automated clearing houses, CHIPS, and Real time interconnection of global FIs through satellite systems have resulted in the increased in the operational risks of the dissertation banking law. There are other operational risks which are not exclusively technological but which are caused by the fraud and errors committed by the employees.
The losses caused by the operational risks affect the reputation of the institutions involved and also the future business potential of the banks and other institutions. Due to the economic globalization the banks and the financial institutions are exposed to increased foreign exchange risks and the exchange risks result either in net long or net short in terms of the foreign exchange earnings of the institutions in the different currencies that the institutions deal with, dissertation banking law.
The intensity of this risk is enhanced due to the fact that there is no correlation between the home currency rates and the exchange rates of the currencies of different countries.
Similarly the undiversified expansion into other countries creates more foreign exchange risks. The banks and the financial institutions are often not able to correlate the returns from the domestic and foreign investments. As a result of the exposure to different governments imposes the restrictions on repayments to foreigners that enhance the risks of the banks and financial institutions.
Dissertation banking law to lack of refined litigation systems the country or sovereign risks could not be mitigated. There are a number of examples for the country risk in what has happened in Argentina, Russia, dissertation banking law, South Korea, and Thailand.
The role of the International Monetary Fund in extending aids to the banks in trouble is to be appreciated, dissertation banking law. The position of the banks in the absence of the initiatives dissertation banking law IMF would be more precarious. Liquidity risks relate to the position of the banks or other FIs to borrow excessively or sell off the assets within a short period of time to meet its financial obligations.
This may be the result of pricing the financial service products very low. Dissertation banking law risk of insolvency implies the risk caused to the financial institutions because of the possession of insufficient capital to make good the sudden decline in the value of assets and liabilities. The position of the Continental Illinois National Bank and Trust is the classic example for the insolvency risk. The insolvency risk may be caused by any or a combination of interest risk, market risk, dissertation banking law, credit risk, off-balance sheet risk, technological risk, foreign exchange risk, country risk and liquidity risks.
There are other risks which are caused by the interaction of other risks and discrete risks like the risks caused by war or terrorist activities, market crashes, dissertation banking law, theft and malfeasance. These risks are also caused by the changes in the regulatory policies, dissertation banking law. Dissertation banking law macroeconomic risks like increased inflation rate or increase in volatility affects the interest rate risks and increases in unemployment level increase the credit risks.
In the traditional protective environment the bankers and regulators working in close association with each other have evolved systems and procedures that have the effect of protecting the financial service institutions and thereby they constituted to the stability of the financial system, dissertation banking law. For achieving this end, both direct and indirect approaches to regulations were followed by the authorities and the regulators Boot et al.
The direct approach by explicitly prescribing and specifying the activities the banks can undertake has reduced the discretion on the part of the banking institutions and the regulators as well, dissertation banking law. The Glass-Steagall Act that was in force in the US which separated the commercial banks from the investment banks and also distinguished the operations of banks and insurance companies as being followed in many countries, exhibit the direct approach to the financial industry regulations.
The indirect approach on the other hand mainly uses the price and non-price incentives which have the effect of inducing the desired behavior of financial institutions, dissertation banking law. However, in the light of the existence of a highly competitive environment where the level playing field and the regulatory arbitrage are some of the issues that need to be addressed, the adoption of both direct and indirect approaches to the regulatory frameworks proved to be expensive, dissertation banking law.
More specifically the approach of using direct regulatory measures in a competitive and swiftly changing business scenario seems to be seems to cost heavily. This is so because with the rapid changes the regulatory frameworks appear to be getting out of dated quite constantly making them unusable Boot et al. The emphasis on the dissertation banking law regulatory approach has been diluted by the enlargement in the scale and scope of the activities of the banking and other financial institutions.
On the contrary the incentive based indirect approach of regulatory framework has gained momentum, dissertation banking law. This shift can be seen from the increased refinement in the risk based capital requirements placed on the banking companies and also the enlargement of other control measures Boot et al. But again in a dynamic and competitive environment it is critically important that the control measures are overhauled periodically to include the current requirements of the industry and this needs a fine-tuning of the control instruments at regular intervals.
This is very much required to prevent competitive distortions taking place. Such evaluation and re-adjustment of the control measures does not appear to be happening in the context of the indirect approach and this has made the indirect approach to the control mechanism through regulations also ineffective. As a result both the direct and indirect approaches to the regulatory frameworks have become ineffective. In view of this the banking industry is facing a number of risks which may affect the functioning of the whole system Boot et al.
The regulations governing the activities and functioning of the banks and other financial institutions take their root in the broad objectives of the government and the regulatory authorities, dissertation banking law, in protecting the ultimate sources and users of savings. These regulations normally also cover the prevention of unfair practices such as redlining and other discriminatory actions.
The primary role of the regulations is to ensure the soundness of the entire banking and financial system as a whole. However it must be noted that the regulations under direct and indirect approaches incur costs. The regulations also aim at increasing the safety and soundness like the minimum capital requirements. The formation of Guaranty funds like Bank Insurance Fund BIFSavings Association Insurance Fund SAIF and Securities Investors Protection Fund SIPC aim at protecting the interests of the investors and savers.
The other regulations take the form of monetary policy regulation, Credit allocation regulation, and Consumer Protection regulation. The consumer protection regulation includes the Community Reinvestment Act CRAand Home Mortgage Disclosure Act HMDA, dissertation banking law.
The promulgation of Securities Act, dissertation banking law, dissertation banking law, and the Investment Company Act of are the key legislation in the investor protection legislation. Such legislation act to protect the investor against abuses like insider trading, dissertation banking law, lack of disclosure, malfeasance, and breach of fiduciary responsibility.
There are entry regulations dissertation banking law include regulations governing the scope of permitted activities through Financial Services Modernization Act of Thus the competitive environment and the dissertation banking law of development of the financial systems largely affect the required design of the regulations. Since the intention of the regulations are to protect the interest of the savers and investors it becomes important that the regulations are updated periodically to cover the rapid changes in the financial service products so that neither the institutions nor the customers are put to hardship.
Banking Laws: Risks Facing Financial Institutions. Introduction The regulation of the financial service industry has assumed greater importance in the wake of a balanced economic development of the nation. Learn More.
Collecting the savings of the people with a view to provide them compensation in the form of interest for foregoing the current utility of those savings and.
Providing fiancé to those people, firms dissertation banking law even governments who have the dissertation banking law of investing the finance so provided which will enable them to pay back the institutions the financing and other service charges in the future, dissertation banking law.
Mechanisms or instruments that enable the potential savers to park their savings safely and profitably. Mechanisms which provide the needy investors or borrowers the required funds to fund their projects. Provision of advises to the savers as to the manner of dealing with their financial needs, dissertation banking law, as well as managing the assets dissertation banking law the investors and savers and.
Mechanisms to protect and manage the life, property, dissertation banking law, and finances of the constituents The Environment. Our academic experts can deliver a custom essay specifically for you. Use discount, dissertation banking law. Learn more, dissertation banking law.
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In fact, we Dissertation Banking Law can. Having one of the fastest writers in the industry we Dissertation Banking Law can write you a paper today, tomorrow, in 6 hours, or in 59 minutes. Any deadline is manageable when you have so proficient writers on the team/10() Sep 30, · In an early paper titled “The People’s Ledger,” Omarova argued for making private banks “non-depository lenders,” changing banking “as we know it.”. Omarova was picked to be the To get a high score on a dissertation, students need to come up with an interesting, unique topic. If the student is unable to think of a topic on their own, they can always use one of the 25 banking dissertation topics that are used on this list. These topics can be used as they are written, or they can be modified to suit the student's personal interests
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